CMHC says property market is not at risk
The Canada Mortgage and Housing Corporation has released its analysis of house prices and concludes that while there is some overvaluation, there is little risk from overheating or overbuilding. The agency says that Montreal, Quebec, Toronto, Calgary and Halifax all have some characteristics of overvaluation but there is some improvement. In the rest of the country CMHC believes that the market is broadly consistent with interest rates and other economic factors. Bob Dugan, CMHC’s Chief Economist says: “Across the 8 CMAs examined, there is no overheating or acceleration. There is however a cautionary note with respect to overbuilding in Toronto and Montreal. The number of units under construction is elevated in these centres.”
Seniors opting for retirement in the suburbs
A new study suggests that more retirees are choosing to shun downtown condo living in favour of a home in the suburbs. The report from the University of Concordia shows that despite the easier access to facilities that downtown offers, a growing number of retirees across the country are opting for apartments out of town. For planners this creates a challenge as older seniors may not be able to drive and demand for transport links or more suburban amenities will increase. The report doesn’t look heavily into why seniors are making these different choices but it may well be down to an increase in the affordable apartments available in the suburbs. Read the full story.
Confidence drops to 9-month low but house prices expected to rise
The weekly Bloomberg Nanos Canadian Confidence Index has fallen again to a 9-month low. Optimism about job security and personal finances were among the factors weighing heavily on the concerns of consumers as the index fell to 57.4; the 12-month average is 58.8. The sub-index of real estate prices showed better sentiment, at least for homeowners, as those believing that house prices will increase in the next six months rose to 38.4 from 37.2 a week earlier although this is still below the average of 40.3 this year. There was also increased positivity in the number feeling that they are better off this year than in the past. Read the full story.
New office report puts Canada’s cities in North America’s top 10
Although there have been reports recently suggesting that Calgary’s office market may be stagnant, it has made the top 10 in a list of North America’s best office markets. The new Colliers International North American Office Report for Q3 2014 shows that Calgary along with other major Canadian cities often have lower vacancy rates than those south of the border. Toronto is at 6.6 per cent, Montreal at 7.3 per cent and Calgary 8.7 per cent. The overall average is 8.4 per cent compared to 13.5 per cent in the US. Toronto and Calgary also make the top 10 in Colliers’ report for office space under construction. Read the full story.
Are you looking to invest in property? If you like, we can get one of our mortgage experts to tell you exactly how much you can afford to borrow, which is the best mortgage for you or how much they could save you right now if you have an existing mortgage. Click here to get help choosing the best mortgage rate
Investment Hot Spots:
Jemseg, Peacock Point, Strathroy-Caradoc, Ridgedale, Cabri